Balancing revenues and expenditures

Sunday

Feb 24, 2008 at 12:01 AM

John Covington is superintendent of the Pueblo City Schools.

I receive thousands of letters, e-mails and calls each year covering a spectrum of subjects. Yet one topic, our budget, appears to be the number one concern of our community. Sometimes we take for granted that taxpayers know they fund their schools; however, judging by the comments, this is a good time to share how we are funded and where we invest your taxes.

Schools throughout Colorado are funded from three sources: local property taxes, state funds and vehicle registration fees.

We receive $20,126,400 through local property taxes, $91,215,200 from state funding (based on enrollment) and $2.4 million from vehicle registration fees. We also receive additional funding through grants, sponsorships and other sources.

This year our budget is $196,279,000, of which $126,728,000 is designated to the general fund.

Although Colorado determines state school district funding levels, the amount contributed by each of the three sources varies according to the wealth of the community. Because of Pueblo’s low property assessed valuation, we receive a larger (80 percent) portion from the state.

Do you know Pueblo City Schools ranks almost at the bottom out of 178 public school districts in Colorado in terms of per-pupil funding? This is unacceptable.

So how do we invest your taxes? As with all large service organizations, the majority of our budget, 85 percent, goes to salaries and benefits for our 1,780 employees. We invest another 6 percent for purchased services, 8 percent for supplies and 1 percent for other expenses.

A rumor to put to rest is we have “too many” administrators (principals, assistant principals and central administration). I believe it is important for the public to know that administrators comprise only 4.7 percent of our work force.

Let’s address the $6 million cut. With no intent to criticize past administrations, the reality is spending outpaced income. We are constitutionally required to have a balanced budget. If, as in the past, we are going over budget, adjustments must be made so that by June (the end of our fiscal year) our books are balanced.

In preparing the 2007-2008 budget, we analyzed our projected “income” (revenues) against existing programming and services (expenditures). The numbers did not add up to a balanced budget, so districtwide cuts were made, with the intent of minimizing the impact on the classroom. We made wise, but tough choices, and not all were popular. Yet, if we had not balanced our budget we would be in violation of state law.

Now, what if we wisely manage our funds, but still have to cut services and programs? This is the predicament schools all over Colorado face.

Colorado has lagged behind the nation in K-12 education funding for years. Last year, Colorado ranked near the bottom nationally and the forecast for increased funding is questionable.

In 2000, the public recognized education funding was not keeping pace with inflation, so voters approved Amendment 23. The intent was to restore kindergarten-through-12th grade financing to 1988 levels by funding schools at the rate of inflation plus 1 percent.

The passage of Referendum C provides additional funding to public schools, but only for five years - until 2011 - the same year the extra 1 percent in Amendment 23 ends. Even with the additional infusion of funds, it is important that you know that:

Colorado spends $971 less per child than the national average.

Colorado is 48th in spending on K-12 and higher education as a percentage of individual income.

Colorado is 49th in spending for teacher salaries and benefits as a percentage of individual income.

We are wisely investing your taxes, but we need additional funding to truly be a world-class school district. Your community-led Strategic Plan calls for significant educational, facility and “people program” improvements.

Trying to keep pace with inflation, with less funding while at the same time improving measurable performance, is a major challenge.

We are doing our part in managing your taxes. Will you do your part to ensure your schools are financially supported so that the students of this community receive a world-class education?

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